CarZ to raise Rs 120 crore PE fund

CarZ, a Hyderabad-based start-up which is into the multi-brand auto solutions space, is looking at raising Rs 120 crore (around $25 million) private equity investment by February next year.

“We are in discussion with multiple PE investors from India as well as abroad. We may raise the money from a single investor or multiple investors,” Venu Donepudi, co-founder and managing director of CarZ, told Business Standard.

The company has 16 CarZ outlets across Andhra Pradesh, Karnataka and Kerala. “We have plans to add another 34 outlets with an investment of Rs 45 crore over the next two years across the southern and western markets including Gujarat, Maharashtra and Tamil Nadu,” he said.

Each of the 1,000-sq yard outlet requires an investment of around Rs 1.2 crore. “Part of the second-round funding will be used for expansion of these outlets and to have a pan-India presence,” he added.

CarZ, which commenced operations in February 2010 from Hyderabad, had raised $5 million (around Rs 22.5 crore) in a series-A funding from IndoUS Venture partners this year.

The company targets to achieve a turnover of Rs 20 crore by the year-end. “We have been growing at 400 per cent year-on-year, and expect a similar growth to follow in the coming years,” he added.

CarZ on Tuesday entered the Kerala market by opening its first outlet in Kochi, and its 16th in the country. “We plan to open another six outlets in Kerala over the next one year,” he said.